Many people find that the language of protection insurance isn’t particularly user-friendly, with confusing terminology often becoming a barrier to finding the right insurance. We believe that nobody should be prevented from protecting themselves and their loved ones – so we’ve put together this comprehensive jargon buster to help you out.
Types of insurance
Critical illness cover – designed to pay out a lump sum if you are diagnosed with a specific illness listed in your policy.
Income protection insurance – designed to pay you an income if you are unable to work due to illness or injury.
Life insurance – designed to pay out a lump sum to your family if you die.
Whole of life insurance – covers you for your lifetime, however long this may be.
Term life insurance – covers you if you die within the period of time – or term – set out in your policy.
Mortgage payment protection insurance (MPPI) – this is a type of income protection insurance that is designed to cover the cost of your mortgage payments.
Payment protection insurance (PPI) – this is a type of income protection insurance that is designed to cover the cost of loan or credit card repayments.
Private health insurance – designed to pay for your medical bills should you require private healthcare.
Beneficiary – a person you have chosen to receive a life insurance payout upon your death.
Exclusion – a specific situation or circumstance listed in your policy that is not covered by your insurance.
Excess – the first portion of a claim, to be paid by the insured person.
Non-disclosure – failing to disclose all the relevant information to an insurer when you apply for cover; this can invalidate your policy.
Policy – a document that contains all the terms and conditions of the insurance cover you have purchased.
Pre-existing condition – this is any health condition you were diagnosed with prior to taking out your policy. Some policies won’t offer cover for these, or will charge a higher premium.
Premium – the monthly or yearly sum you pay in exchange for your insurance cover.
Sum assured – this is the amount your insurer will pay out on your insurance policy when you make a claim.
Term – the length of time for which you are insured under your policy.
Written in trust – this is a way of taking out a life insurance policy so that the payout doesn’t form part of your estate when you die.
Talk to us – If you have previously put off taking out insurance because you are unsure or embarrassed about not understanding all the jargon, don’t worry. That’s what we’re here for. We’ll listen to your requirements and help you select the cover that works best for you.
As with all insurance policies, conditions and exclusions will apply.
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